Good morning. It’s great to be here in New Hampshire at this
exciting time. The eyes of the nation, even the world, are on your
first-in-the-nation primary.

With the steady stream of candidates passing
through the doors of the Institute of Politics, the eyes of the world have also
been on Saint Anselm. So what a privilege to join you.

Neil [Levesque],
thank you for welcoming us. And Jim [Roche], thank you for the introduction—and
for your leadership for manufacturers and the business community here in New
Hampshire.

I’m grateful to have two NAM board members with us: Doug
Starrett, president and CEO of the L.S. Starrett Company; and Don Welch,
president of Globe Manufacturing Company.

Bill McCourt, president and CEO
of the Rhode Island Manufacturers Association, thank you for coming—and for your
partnership.

***

I’m here today to share with you
the State of Manufacturing in the United States. Why manufacturing? It’s simple
really. It’s because the strength of manufacturing in America is responsible for
the success of America in the world. That is an indisputable fact. When
manufacturing succeeds, America succeeds.

That may sound counterintuitive
to some, and it belies the picture some would like to paint: that manufacturing
means things of the past—old, gritty factories, simple tools and rudimentary
machines. If that’s the image the word “manufacturing” conjures in your mind,
then come with me, ladies and gentlemen. It’s time to introduce you to modern
manufacturing.

Today’s manufacturing is vastly different from
yesterday’s. The National Association of Manufacturers has more than 14,000
member companies, from world-recognized brands to family-owned small businesses,
and we are the voice of more than 12 million working men and women, their
families and the communities they build.

Just a quick look at some of our
members’ work will show you: modern manufacturing touches every aspect of our
lives.

From 3M’s strides in the food safety field to reduce pathogen
outbreaks…

…to Amgen or Bayer’s research and production of
cancer-fighting and life-improving medicines.

We’re talking about everything from a small firm
turning recycled materials into sustainable packing…

…to the vast new
world of the Internet of Things, where everyday objects are now digitally
interconnected by the web.

First it was our phones. Then it was our
thermostats, our watches, our cars. Soon it will be everything from our contact
lenses to our entire homes…from smart wallboard, to autonomous automobiles, to
transcontinental pipelines.

Thanks to Honeywell, for example, you can
control your home security, lighting and energy management with the touch of a
button from around the world.

And thanks to a new initiative from
AT&T and its corporate partners, major U.S. cities will turn into “Smart
Cities”—linking infrastructure in a digital ecosystem to improve energy use,
traffic flow, crime reduction and more.

That’s the Internet of Things…and
that’s modern manufacturing.

By some estimates, 26 billion objects will
be linked together by the Internet by the year 2020. Manufacturing is truly
changing everything…and all these things are changing America and changing our
lives.

That’s why, today, manufacturing in the United States is leading
an innovation revolution—a revolution that will win us jobs, raise standards of
living and restore our mantle of leadership around the world.

***

While more than 12 million people across the country work in manufacturing,
our sector supports another six million jobs in other areas. Our industry
contributes more than $2 trillion to national GDP. If U.S. manufacturing were
its own country, it would be the ninth-largest economy in the world.

Here
in New Hampshire, manufacturing adds about $7.7 billion to the state economy.
And over 10 percent of New Hampshire’s non-farm workforce is employed by
manufacturing.

We are the backbone of the economy, and we have the
biggest multiplier effect of any industry. For every dollar invested in
manufacturing, another $1.40 is added to the economy. It’s why
manufacturing—more than any other industry—improves our way of life and builds
communities.

So, you see, the state of manufacturing matters. It
matters for the state of our union.

Every day across this country,
manufacturers go to work, competing to win. New technologies, affordable energy
and world-leading productivity have given the United States a competitive
advantage in the global marketplace. But obstacles are still in the way of
forging an economy that lives up to our people—and to the potential we can
unleash.

Unavoidable headwinds, like global economic weakness and
worldwide instability, have roiled manufacturing. While this will be slow to
change, our leaders right here in our own country have at this moment the power
to fix other self-imposed barriers to opportunity and success.

They can
fix policies in Washington that imperil our promise.

These barriers exist
because Washington hasn’t yet summoned the will to change them. And because “We
The People,” in some ways, haven’t done enough to fight for manufacturing as
essential to American Exceptionalism and our future.

Just as “American
Idol” is entering its final season this year, it’s also time to stop selecting
political candidates based on how they sound, rather than what they can actually
do for manufacturing and our country.

Of course, if you listen to the
candidates who are out campaigning today—here in New Hampshire and
elsewhere—they all embrace manufacturing and pledge their support…at least
rhetorically.

And the same is true of many of our leaders in Congress and
state capitals—and among the general public. By and large, we all believe in
standing with the great men and women who make things in America.

But
words alone won’t change the business climate or create more jobs. We need the
right public policy agenda for that.

At the NAM, we want to make it easy
on our leaders. We’re spelling out exactly the right policies for manufacturers
to compete and win, so that America can compete and win.

“Competing to Win” is an agenda that is guided by four core values that also
happen to be foundational principles of this country that we love.

The
first of these is free enterprise: powerful market forces that drive innovation
and growth better than any system ever conceived in the history of mankind.

The second is competitiveness: our ability to expand markets and succeed in
the global economy.

The third is individual liberty: the creativity and
entrepreneurship unleashed by protecting, defending and advancing the basic
freedoms enshrined in our Constitution and Bill of Rights.

And the
fourth, equal opportunity: our shared belief that every one of us, if given the
chance, has the potential to contribute to the success of our companies, our
communities and our country.

Every policy proposal supports these
principles—which are also the values that have made and that will keep America
exceptional.

This document outlines how policymakers can help our
industry, our economy and our country reach our full potential. We zero in on 11
areas:

tax;

trade;

energy;

environment;

transportation and infrastructure;

labor;

immigration;

workforce;

health care;

research, innovation and technology; and

regulatory and legal
reform.

It goes into great detail on policy specifics—more detail
than we have time for this morning.

But our message is this: if a
candidate really wants to be a manufacturing president, this is the agenda.

If Congress wants to energize the manufacturing economy, this is the
legislative checklist.

And, if you want to be a manufacturing voter, this
is your guide to the issues that affect our livelihood and our families.

Start with taxes. To unleash a wave of job creation and growth, we have to
fix our broken, decrepit tax code. Companies in America pay a higher tax rate
than their competitors in every other developed, major economy.

We want
to lead in the global economy, but our tax code means we’re starting from
behind.

Comprehensive tax reform means…

6.5 million jobs
added to the U.S. economy over 10 years;

Lower tax burdens for
companies of all sizes, including the millions of small businesses that drive
job creation in America;

Driving down the corporate rate to 25 percent
or lower; and

Moving away from a seemingly prehistoric tax system that
taxes worldwide income to a modern, territorial system so U.S. companies can
compete on a level playing field when they do business overseas.

Isolation does not work. Just ask the North Koreans. We live in a global
economy, one we were the catalyst to creating in order to lift the fortunes of
all people around the world.

Our tax system needs to recognize that
reality and so does our trade policy.

That’s why our trade agenda has to
be robust and forward-leaning. We can’t rely on the U.S. market as the sole
source of growth when 95 percent of our potential customers live outside our
borders. We need to kick down longstanding trade barriers to open markets
abroad, in order to create jobs at home. And then we need to get to work
improving our own U.S. rules to promote greater competitiveness and access
overseas.

Manufacturers have a proud history of advocating for free
trade. But we are a nation of laws, and we demand adherence to international
trade commitments and rules to ensure fair trade.

It’s a similar story in
the energy world.

Our access to diverse, affordable and reliable energy
is a tribute to American innovation. Because we now have access to a wide array
of domestic energy sources that was once unimaginable, we have the potential to
be far less reliant on others for our energy needs and to be able to export
energy to other countries. In this area, Washington’s policies need to be
recalibrated to propel us forward.

To keep our energy supply reliable and
affordable, we can’t pick and choose among energy sources. We need to encourage
the use of all of them.

Our leaders can approve and build new oil and
natural gas pipeline projects that improve energy access—particularly in the
Northeastern United States, where this infrastructure is lacking. And they can
support measures to enhance the deployment of energy-efficient technologies.

And that last point—energy efficiency—brings us to the environment.

Manufacturers are not only committed to protecting the environment through
greater sustainability and reduced emissions, we are leading the way.

The
United States has reduced its greenhouse gas emissions over the past decade more
than any other nation, and that reduction has been led by manufacturers who have
reduced greenhouse gas emissions by more than 10 percent since 2005. Ozone
levels are down 25 percent since 1990, and they continue to fall. All this has
happened while manufacturers’ value to the economy has more than doubled.

Manufacturers are eager to continue leading the way. In order for us to do
that, we have to strike a balance between our laudable ambitions for improving
our environment and what is actually commercially feasible. America should be,
and can be, an economic and environmental leader.

Lawmakers need to work
together to commit to modernizing outdated environmental laws written during a
bygone era known for rotary phones and the Beatles. We can’t build a sustainable
future if we’re coping with laws written for a nation and world that, frankly,
no longer exist.

Likewise, we aren’t going to build a modern economy when
we are relying on a frail and crumbling infrastructure.

Go elsewhere in
the world and you will be a witness to the most up-to-date infrastructure and
intermodal systems that exist. But here in America, congestion and deteriorating
roads threaten not only our quality of life but also our very ability to compete
economically.

Late last year, we saw some green shoots of progress when
Congress finally passed a multiyear surface transportation authorization
bill.

But that success was nearly a decade in the making. We need more.
We need greater commitment to build the system of the future.

Our ports
and inland waterways need to be upgraded to remain world class, and the U.S.
aviation system, which catapulted the connectivity of nations and people, must
remain second to none. If we don’t keep moving forward, transporting people and
products in America will become slower, costlier and riskier. We can do
better—and create jobs along the way.

But let’s cut to the chase: more
and better jobs are exactly what officeholders and candidates should have as
their number-one priority. There is no contest. There are no more creative,
conscientious, industrious or productive workers than right here in the U.S.
That’s something to celebrate. That’s something to build upon. And to do that,
we need labor laws and workplace regulations that reflect the dynamics of modern
manufacturing.

The 21st-century workplace must incentivize employees to
remain in the manufacturing sector. Compensatory time off, flexible work
arrangements…these are contemporary ideas that work.

Now over the past
seven years, we’ve seen some regulations from the National Labor Relations Board
that are doing the exact opposite…making doing business more expensive and
hiring workers more difficult. But it’s understandable when you have members of
the powerful board who have never run a business and had to grow jobs.

Our people and our economy are strong because of our diversity as a nation as
well. Here’s a fact, whether some candidates like it or not: we are a nation of
immigrants. We attract the best and the brightest, the most industrious, to our
shores. So let’s quit pretending that xenophobia is somehow good for our nation.
Instead, let’s acknowledge that our immigration system is broken. Let’s fix it
and get it right.

Instead of hostility and vitriol directed at 12 million
human beings who happen to be undocumented, let’s figure out how to enable them
to contribute to America’s success. Let’s advance a rigorous and fair employment
verification system….Institute a border security plan that allows for free trade
and improved security….Increase the number of employment-based visas….Streamline
the employment-based green card system and allow for those that are unused to
roll over from year to year.

Our country thrives when we meld cultures
and build communities. And manufacturing thrives when we have access to a
skilled and productive workforce. Over the next decade, we will likely need to
fill 3.4 million manufacturing jobs.

But 2 million of those jobs are
going to go unfilled because there’s a shortage of workers with the right
skills—often high-tech skills. That’s what we call the “skills gap.”

Part
of the problem is that only 37 percent of parents encourage their kids to pursue
manufacturing careers, and only 18 percent view manufacturing as a top career
choice. One way that perception will change is by updating and invigorating our
training programs.

Industry partnerships between companies and schools
need to increase, and curriculum needs to better align with work-based learning
opportunities.

And in the world of cyber-learning, let’s quit protecting
old ways of learning and make credit transfers simpler—so that it’s easier for
students to earn the credentials they need.

Failing to close the skills
gap affects all of us. It means lost innovation and lower productivity. It
represents missed opportunities. Manufacturing jobs, on average, pay better. The
average manufacturing worker earns over $79,000 annually, about $15,000 more
than the average worker across all sectors.

Of course, updated skills is
one factor for a productive workforce. So, too, is health care. Just like for
families across the country, escalating health care costs continue to be one of
the top concerns for manufacturers.

Congress made important strides last
year when they suspended the medical device tax and delayed a tax on employee
benefits.

The next step is to decrease costs and increase savings for
working families. That means higher contribution limits for health savings
accounts so each and every person can be given a benefit for financially
preparing for their health-related expenses.

For employers, modifying
the Affordable Care Act to get rid of unnecessary administrative burdens and
promoting wellness programs will further our goal for a healthier society.

Government policy shouldn’t limit the options that are offered to employees.
But as coverage becomes more and more expensive, that is exactly what is
happening. Quality of life matters, and we need to get health care policy
right—and soon.

A better, brighter future and more rewarding quality of
life are also made possible by our ability as a nation to invest in research,
innovation and new technology.

Manufacturers account for more than
three-quarters of private-sector spending on research and development. That
R&D has brought us new sources of energy, new lifesaving medicines and
medical devices, more efficient automobiles and so much more.

We have an
obligation to the next generation of Americans to continue leading the way,
encouraging innovation and progress.

Last year, Congress finally made the
research and development incentive a permanent part of our tax code. That sent a
loud and clear message to the world that we are not done inventing the future.
Now, let’s protect the products that result from innovation.

As
international trade agreements are negotiated, our leaders must never back down
from our commitment to strong intellectual property protections. Manufacturers
must have the ability to defend ourselves against trade secret and intellectual
property theft.

And that brings us to the final piece of our agenda:
regulatory and legal reform.

It’s pretty straightforward: Our legal and
regulatory systems are broken. In fact, our regulatory system costs $2 trillion,
while our legal system is more than twice as expensive as major competitors like
Japan, France, Canada and the United Kingdom.

Look: smart, transparent
and effective regulations are important to a successful system of free
enterprise. But manufacturers today bear a disproportionate share of the burden
of regulatory compliance costs.

For small manufacturers, regulation costs
total almost $35,000 per employee per year—more than three times the cost for
the average U.S. company.

What can we do to bring about a better,
commonsense-based approach to regulating?Well, first we streamline the
regulatory system. We are committed to protecting our health and safety, but we
should sunset outdated and ineffective regulations. Second, we ought to be
holding independent regulatory agencies accountable to improve transparency. And
third, Congress needs to step up and provide its own regulatory review and
analysis, instead of abdicating that responsibility to the executive branch.

And when it comes to our legal system, we need to respect the fact that we
are a nation of laws, but no one should be permitted to abuse the system with
frivolous lawsuits. Lawyers who do that should be slapped with mandatory
penalties. Limits on punitive damages, venue shopping and out-of-balance,
plaintiff-biased jurisdictions are critical components of a competitiveness
agenda as well.

***

Now, that’s a full plate of
priorities. But ultimately, they are critical to our success as a
nation…empowering us to pioneer the future—to let people build better lives.

To offer the mom living in Manchester a job to provide for her children today
and her retirement tomorrow…

To give the family in Concord the chance to
advance and improve their standard of living…

To ensure the veteran
coming home to Bedford can enjoy the freedom she defended for all of us
overseas…

And to give communities across this state and this country a
foundation for growth and hope for a brighter tomorrow.

Throughout
America’s history, manufacturers have made our country stronger by the people we
employ, the lives we touch and the products we make.

Today, building a
stronger country requires something else—bringing the right leaders together to
get the job done. We need to elect and support people who believe in
solutions—and those four foundational principles: free enterprise,
competitiveness, individual liberty and equal opportunity.

You know,
leading our great nation is about more than who can yell the loudest, or who can
denigrate others most, or who can express the least desire to work across
ideological lines.

No, true leadership that is worthy of the promise of
America brings out the best in all of us. A great leader appeals to our
aspirations as a people. He or she builds trust and inspires us to tap our
highest ideals of freedom, democracy and liberty…to unleash our innate desire to
build higher, work harder and succeed more than any nation on Earth…all while
lending a hand to help others rise from despair and poverty to realize their own
God-given potential and talent.

A great leader unites. He or she doesn’t
divide.

That is why manufacturers are raising our collective voices—the
more than 12 million voices in the Manufacturing Army—to speak out…and take a
stand. We need you to join us—to question candidates and to vote for those who
support real solutions and real leadership.

We’re manufacturers. We make
things—incredible, life-changing things. And now, it’s up to us to make a
difference again—for the future of our country.